On-Premises ERP Solutions

Want complete control over IT resources and have the means to do so; sophisticated requirements requiring customization for business processes

Application Design and User Interface

Designed for Web technology interface, with typical user-friendly features for Internet usage. Usually supported in most/all major brower choices. Designed for multi-tenant architecture specifically for web delivery.

Client-server based applications designed for speedy processing over local area networks using commonly available PC-based OS and user interfaces such as Microsoft Windows 7 and industry-standard reporting tools such as Crystal Reports

Application Development

Developed from the ground up for online delivery

Developed from the ground up for client-server network topologies and Windows-based graphical user interfaces

Application Deployment

A single vendor both develops and operates the applications - delivered via the Internet

Applications deployed locally on client owned and maintained IT infrastructure

Customization

Highly customizable and does not break with application upgrades

May be completely tailored to a specific client's business processes to even the source code level

Software Customization

Built in a method that is very "configuration oriented," generally configurable by an implementation-trained system user, but not requiring programming customization skills (see Integration below)

Source code and object-oriented architecture lend to easy integration with other similarly-architected solutions. Robust community of experienced development companies can complete and maintain sophisticated links to mission-critical business applications or data sources.

Potential for specific business adaptation may lend itself to implementation times of 2 to 4 months. Varies greatly by project.

Integration

Readily available via application programming interfaces (APIs) using connectors that are either generic or built for specific need. May require programming customization skills in some areas, but many are "pre-built" for popular applications

Mature development languages provide seasoned developers with a portfolio of software objects, Office software scripting tools, and database connectors for robust, deep and responsive integrations. Links to other programs may affect planning for subsequent upgrades as publishers release newer versions of any of the connected applications.

Multi-Tenancy

Applications are designed to be multi-tenant

Applications support one client per instance

Accountability

One vendor provides end-to-end solution so accountability is inherent

Value-added software resellers, software publishers, and infrastructure integrators team up to provide a high level of expertise and service

Application publishers maintain a comprehensive list of operating system requirements and provide support for mainstream OS upgrades as released

Hardware/ Infrastructure Investment

A reliable Internet connection

Unless hosted and deployed by the publisher or another hosting provider, the licensee may use existing network and workstation components to run on-premise applications

IT Support

Generally included in the package from vendor

Generally provided by customer personnel or contractors

Upgrades

Generally monthly or even more frequently

Upgrade cycles frequently span from 12 to 18 months

Remote Locations

Delivery is via internet web browser without requirement for IT infrastructure. Multiple sites or many geographic locations are easily served without need to build or support remote access network.

Remote users access applications and data over the Internet or private networks using terminal server or other remote access technology

Software Investment

Delivered via License fee or subscription allowing the client use of the software. Fee/license includes use of software, infrastructure, vendor support, back-ups, security, and software upgrades.

Choice between perpetual license fees or subscription license plans. Perpetual licensees keep technology current through publishers' software maintenance offerings, which are typically priced at 20% to 25% of the retail price of the license. License subscribers, on the other hand, receive all updates included in the subscription fee.

Software licenses or subscription fees, customization, implementation, training, server and workstation hardware and software, and other mission critical infrastructure components including backup and power systems as well as personnel or consultants to configure and maintain the same

None or very limited internal IT resource. Vendor is typically partnered with Fortune 100-class data center providers that provide backbone; backup/recovery systems, redundancy (included in subscription service due to ability to scale and requirement to focus on this requirement; costs spread across all multi-tenant users)

Unless hosted by the publisher or a data center, the licensee's personnel or consultants support and maintain network infrastructure, security and fault tolerance

Upgrade cost and risk

Vendor responsible; no downtime

Client and channel partner work together to minimize cost and risk of downtime

Upgrade timing and availability

Continuous - major release quarterly

Generally occurs every 12 to 18 months

Hardware infrastructure risk

Vendor responsible; no downtime due to redundancy

Unless hosted by the publisher or a data center, client maintains responsibility for hardware infrastructure

Accountability

"Pay as you go" model so vendor is regularly accountable to client to ensure renewal subscription